Angela Rayner has stepped down from her roles as Deputy Prime Minister and Housing Secretary.
Her decision follows an admission that she underpaid stamp duty on her property in Hove, alongside a ruling from the ethics watchdog that she had breached the ministerial code.
According to Sky News, a broader cabinet reshuffle is now anticipated, with Chancellor Rachel Reeves expected to stay in position, though other roles could be affected.
Blamed the mistake on flawed tax guidance
Property118 previously reported that the controversy surrounding Angela Rayner’s stamp duty related to claims she avoided paying £40,000 in tax on an £800,000 flat in Hove, East Sussex, by declaring it as her main residence.
According to The Times, Ms Rayner had taken her name off the deeds of her Greater Manchester property just weeks before buying the Hove flat. This move meant she paid £30,000 in stamp duty, rather than the £70,000 she would have faced if the property had been treated as a second home.
In a candid interview on Sky News’ Electoral Dysfunction podcast with Beth Rigby, Ms Rayner said the error stemmed from poor tax guidance she had received at the time.
However, The Telegraph reported that the conveyancers involved in the transaction insisted that they had not provided her with stamp duty advice.
Joanna Verrico, the firm’s managing director, told the paper: “We acted for Ms Rayner when she bought the flat in Hove. At no point did we provide tax or trust advice – that is something we always recommend clients discuss with an accountant or tax specialist.
“We feel we are being unfairly blamed for this situation, and I personally feel the weight of that criticism. While we are an experienced firm, tax and trust advice is not within our remit, and we always advise clients to seek expert support in those areas.”
Highly unfortunate, that Ms Rayner failed to pay the correct rate of stamp duty
Angela Rayner chose to refer herself to the Independent Adviser on Ministerial Standards after questions were raised about her stamp duty. Sir Laurie Magnus, the Prime Minister’s adviser on ministerial interests, later ruled that she had breached the ministerial code.
According to Sky News, Sir Magnus’s report stated: “It is regrettable that Ms Rayner did not pay the correct rate of stamp duty land tax on this purchase, especially given her role and responsibilities as Secretary of State for Housing, Communities and Local Government as well as Deputy Prime Minister.
“She believed she was acting on legal guidance, but failed to take into account the clear warning that the advice she received was not specialist tax advice and that she should have consulted an expert.”
Property118 highlighted this issue last week, pointing to HMRC’s stamp duty flow chart. It shows that even when a property is intended to become a main home, the higher rate of SDLT still applies if the previous main residence has not yet been sold.
I deeply regret my decision
In her resignation letter to the Prime Minister, Angela Rayner expressed “deep regret” over the mistake that led to her departure.
She admitted: “I regret not seeking further specialist tax advice, particularly given both my role as Housing Secretary and my complex family circumstances. I take full responsibility for what happened. I want to make clear that I never intended to avoid paying the correct amount of tax.”
Ms Rayner also used the letter to highlight some of her key achievements in government. She pointed to the Renters’ Rights Bill, which she said will finally bring an end to no-fault evictions and rebalance the relationship between landlords and tenants by offering stronger protections. She stressed that everyone should have the right to live in a safe and secure home, and that this legislation would help deliver that for millions across the country.
Responding to her resignation, the Prime Minister said he was “saddened” to lose Ms Rayner from government, describing her as a “true friend.”
He added: “While I believe you have made the right choice, I know it must be an incredibly difficult one. You have worked tirelessly to make this Labour Government a success and have been central to our mission of creating a fairer Britain for working families.”
The Prime Minister went on to praise her work in housing and employment policy. He said her efforts at the Department for Housing, Communities and Local Government to boost homebuilding were vital, while her role in shaping the Employment Rights Bill was a “landmark achievement” that will improve the lives of millions.
Reaction to resignation
Angela Rayner’s resignation is being viewed as a major setback for Prime Minister Keir Starmer, particularly as it comes just weeks ahead of the Labour Party conference.
Her departure also casts uncertainty over the future of the Renters’ Rights Bill, a piece of legislation she strongly supported, which is scheduled to reach its final stages on Monday, 8 September.
Commenting on the news, William Nichols, Regional Director at Lanpro, said: “After the revelations last night, Angela Rayner’s resignation was unavoidable, though disappointing. She had been a leading voice behind some ambitious housing and planning initiatives.”
Nichols went on to raise the question of leadership at the Department for Housing, Communities and Local Government. “Matthew Pennycook could be the obvious successor. He has a solid understanding of the challenges and would bring continuity. But continuity isn’t always the best answer. This could be the right time to reassess elements of policy that haven’t delivered as hoped, especially the focus on local government restructuring.”
He explained that while local government reform might be necessary, it has taken attention away from housing delivery. “In many councils, the uncertainty around reorganisation has stalled progress on local plans. Taking a step back here could allow ministers to refocus on what really matters – growth and housing supply.”
Lawrence Turner, director at Boyer, also reflected on the situation. “Angela Rayner’s reforms recognised both the depth of the housing crisis and the urgent need for bold action. Her departure should not become an excuse for delays. The incoming Secretary of State must continue efforts to unlock delivery and win local authority backing for the homes and infrastructure communities so urgently require.”
Turner stressed that the new leadership would be judged not by promises but by results. “If they can bring local authorities together and push forward real progress, there remains a chance to significantly boost housebuilding within this Parliament.”
Meanwhile, Melanie Leech CBE, Chief Executive of the British Property Federation, urged the next Housing Secretary to maintain Rayner’s stance in favour of “builders, not blockers.”
However, she also encouraged a rethink of policies that have undermined confidence in the sector, pointing to the unexpected ban on upward-only rent reviews and the penalties linked to delayed housing completions.
Leech emphasised the importance of tackling viability challenges as a priority. “The new Secretary of State must work closely with the sector to remove obstacles to delivery. This includes urgently addressing delays at the Building Safety Regulator, which are having a significant chilling effect on new development across the country.”
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